...Phone: 15117967781 Office hour: TBD 2 Course Assessment • Class Participation (e.g., raising questions, discussions) - 20%; • Case study - 30% (Group work) • Term paper – 50% 3 Some rules for class 4 Course Outline Reference 1: Kellermann et al., Financial Supervision in the 21st Century, first edition, Springer Reference 2: Brunnermeier et al., The Fundamental Principles of Financial Regulation, Geneva Reports on the World Economy 11, 2011 1. Introduction 2. IPO regulation 3. Listing firms regulation 4. Bank regulation 5. Regulation system 6-10 Special topics 5 Special topics • 外资银行的监管:阎淬, 摩根大通银行（中国）有限公司哈尔滨分 行行长, 3月26日，9-12, 14-17 • 金融稳定: 杨聘, 中国人民银行研究局, TBD • TBD Is it relevant to us? 7 IPO注册制 • 2015年12月27日， 十二届全国人大常委会第十八次会议在北京经 表决，通过了关于授权国务院在实施股票发行注册制改革中调整 适用《中华人民共和国证券法》有关规定的决定。 中国现行股票 发行实行的是核准制度，是由证券法确立的。实施股票发行注册 制改革，需解决于法有据的问题。 目前的机制和流程 • 核准制或者说是行政审批制 Listing Rules in China • Securities Law of The Peoples Republic of China (1999, 2005, 2013, 2014) • Relevant institutions: • Investment Banks, Accounting Firms, Property valuation Firms, Law firms Requirement Source: http://www.pwccn.com/home/eng/ipo_cmsg_a_share.html 流程1 • 企业申报材料后有三次与证监会沟通的机会：见面会、反馈意见 后、发审委会议。三次见面的对象、沟通内容以及沟通目的不一 致，保荐机构作为专家应帮助企业根据具体场合有所调整。 流程2 • 见面会； 申报材料后5个工作日内； 发行部分管副主任，一、二处以及综合处 处长，审核 员 1、发行部向企业介绍审核程序，分管主任、 处长以及审核人员； 2、企业介绍公司基 本情况，核心竞争力，并回答发行部领导问题。 • 反馈意见后沟通 ； 出具反馈 意见后，初审报告 前 ； 一、二审核人员 企业及保荐代表人 就反馈意见与审核人员进行沟通，一方面明确意见的关注点，另一方面就可能的解决办法 ...
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...9/22/2011 MACC 424: WSJ Diary Project China Studies Foreign IPOs 09/21/2011 I. Summary China’s government is considering new regulations to govern a corporate structure, the so called VIE which is known as variable interest entity, that has enabled a wave of Chinese firms to list overseas by circumventing rules against foreign investment in sectors such as the Internet. Under this special structure, Chinese legal entities hold the sensitive permits and licenses required to do business in China while the offshore holding companies in which foreigners buy shares contract with those onshore entities, which are often controlled by the holding companies’ top executives, to get revenue from fees and royalties. Since the China’s domestic exchanges are dominated by state firms thus any move to clamp down on future use of the VIE structure could leave privately owned companies in many industries with limited options for going public especially the Internet industries. It turns out that Chinese officials is decided to set up extensive controls on the Internet, after social-networking sites and other web-based tools are common and essential in people’s normal life II. My Reaction As we all know, most Internet companies in China take VIE structure to make themselves successfully listed overseas, such as Sina, Baidu, Tencent and Alibaba. If VIE structure is illegal, it is devastating to the all the partners or any stakeholders in these overseas listing companies, as...
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...Going global means new frontiers Introduction On the 19th Sep. 2014, the world’s largest initial public offering (IPO) was successfully completed in the New York Stock Exchange (NYSE), U.S., and the total IPO amount has reached up to $25 billion (Chen. Mac. Solomon. 2014). Alibaba, the miracle creator, used only 15-year’s development to take the seat in the Wall Street and build an e-commercial empire. The NYSE’s IPO is the signal to tell global investors and competitors that Alibaba is ready to join the global market competition. For Alibaba, going global means new frontier, however, the new frontier could be either a barren cliff or cornucopian grassland. In this essay, we will mainly discuss that why Alibaba want to expand global markets, and how Alibaba is going to make the global strategies to against global competitors in overseas market. by avoiding direct competition, targeting similar market as China and increasing firm size in the global market environment to step into a “grassland” market for persistent development. Alibaba -- the world’s largest online and mobile commerce company, was established in 1999 by the group of 18 people led by Jack Ma in Hangzhou, China. There are three main sites in Alibaba China, including T-mall, Taobao and Alibaba.com along with numbers of other companies to support Alibaba’s ecosystem development. Moreover, Alibaba also has Alibaba.com and AliExpress.com to provide worldwide online shopping services (Pressman 2014). Until 2013...
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...asked in the business press. People wondered if Caterpillar had done proper due diligence, how Siwei had perpetrated the fraud, and if any Caterpillar employees had been involved. The incident raised new fears and resurrected old ones about doing business in China and the trustworthiness of Chinese firms. There were rumors everywhere and few answers. Caterpillar itself was not very forthcoming with particulars. This makes it difficult to know for certain what exactly what went wrong and why. Any analysis requires reliance on speculation and raises as many, if not more, questions than it answers. It is still worth looking into because it shows some important points that other companies can learn from. Background Caterpillar has had difficulty establishing a position in China comparable to its position in the rest of the world. In order to grow its operations China, Caterpillar decided to take a route that has proven successful for many MNCs operating in the PRC and use M&A rather than build things from scratch. After looking around, in 2011 Caterpillar proposed the acquisition of ERA Mining Machinery and its subsidiary Siwei for $886 million. ERA Mining Machines (ERA) was a mining machinery firm in China that was listed in Hong Kong and was the result of a reverse merger. While Siwei, ERA’s wholly own subsidiary, had always been a manufacturer of mining machines, ERA was a neophyte in the industry. ERA had previously “acquired” Siwei through a reverse merger...
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...LEVENDARY CAFÉ PROPOSAL Introduction In February 2011, Mia Foster became the CEO of Levendary Café, an American franchise chain of restaurants that had engaged in an IPO just one month ago. In 2008, the organisation had started a Greenfield expansion to China, Levendary China. The company did not have a deep understanding about the Chinese market and had left full control of the overseas operations to Louis Chen. When Mia Foster arrived on board, Levendary’s stock market was traded at discount and the Chinese operations were not following the core company’s strategy. After arguing with Chen via videoconference, Foster decides to go to China on May 25 to have a face-to-face meeting with Chen and resolve Levendary’s position in China. Commercial problem The main commercial problem that the company is facing is an uncontrolled an uncoordinated expansion to a new unknown market. It is the first serious international expansion of the organisation and it is a necessary step for the firm in order to increase profits and market share, since it is facing a dramatic slowdown in domestic growth. All in all, the internationalization process is not following the core business values that had made Levendary Café successful in the US. Failure to address the situation could end up in: * Damaging the brand image and losing market share in the US. * Resulting in overall losses and failing to succeed in the Chinese market. * Causing an important fall of stock prices...
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...EBAY’S STRATEGY IN CHINA: ALLIANCE OR ACQUISITION In December 2006, eBay Inc., a US company that offered e-commerce, e-payments and internet communication services globally, announced its plan to form a joint venture with China-based online portal and wireless operator, TOM Online, in which eBay would have 49% ownership.1 The move reflected the increasing difficulties foreign internet companies were facing in their attempts to snatch a share of the Chinese market amid fierce competition and a changing market environment. eBay first set foot in China in 2002 by acquiring 33% interest in EachNet—a domestic online auction company, followed by a full acquisition in 2003.2,3 In 2005, eBay acquired Skype4 to expand into the online communication sector. While Skype was a wholly owned subsidiary of eBay globally, it operated indirectly in China via a joint venture with TOM Online. Due to this existing relationship between the two companies,5 TOM Online seemed to be a natural choice of partner for eBay’s subsequent decision with regards to its online marketplace business. Recognising TOM Online’s local knowledge and political connections, eBay believed that a joint venture would benefit its failing business in China and help the company further develop its Chinese market.6 Some analysts questioned whether political connections alone were the answer and suggested that eBay focus on its product and service offerings.7 Vara, V. and Chao, L. (20 December 2006) “EBay’s China retreat highlights...
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...generally consisted of four elements: stationery devices, including a massive granite worktable; moving elements; electrical parts; and a controller. The players Indivers BV was a Dutch holding company that had been established by Twaalfhoven who had built a business around the manufacture of aircraft engine parts in the 1970s. Overtime, Twaalfhoven had made several investments in high-tech startups to participate in the exciting growth opportunities for high technology companies and support entrepreneurship. All of these investments were targeted at high technology industries and were grouped together under the Indivers umbrella. Qingdao Qianshao Precision Machinery Company (QQMF) in Qingtao, China, was a division of a state-owned enterprise AVIC (the Aviation Industries in China). QQMF with its 1,116 employees had produced pneumatic tools as well as...
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...COMPANY GLOBAL 1. SUMMARY Haier (“the Company”) was China’s biggest white-goods producer and supplier in 1990s. In 1984, there was nearly 300 local producers in China market, most of which were producing poor quality goods. However, customers were willing to pay more for higher-quality products and reliable service. This need created an advantage for differentiation. In Chinese market, demand was high. Haier being able to read customer need properly, focused on Product Quality, After-Sale Services and Brand Building. While there was oversupply in the market, with product differentiation Haier was able to raise its prices. Their target was to be a first-class brand. In early 1990s, while the demand was exceeding the supply, they decided to set up a large scale production. In 1991, they focused on Diversification on product range. They acquired an AC and a Freezer company, which were performing poor and turned around these companies into profitability quite soon with the right restructuring and strategy. There was a government pressure on Haier to take over poor performing firms ( i.e. in 1993, acquisition of Red Star). In 1992 the Company needed additional capital to invest in land and construction, but did not get subsidied due to government restrictions.As an alternative solution the Company undertook an IPO and went public with its 43.7% refrigerators division on Shangai Stock ExChange in 1993. In 1997, the Company added TV and telecommunication equipment (“black goods”)...
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... Abstract: Alibaba.com is one of the leading e-Commerce companies in China. It has grown admirably from its initial beginning as an e-Market connecting small suppliers and buyers to a giant emarketplace that has several operational platforms. Currently the heavy reliance on Chinese Economy, the counterfeit goods issues, and the competition from other emarketplace remain Alibaba’s greatest challenges. In this paper I evaluate Alibaba’s business model including its mission, vision, and values, revenue model, and its R&D structure. Alibaba’s strategy led to its competitive advantages in realizing network effect of scale and understanding the Chinese market. 1 yli17@cmc.edu 1. Introduction On November 11th, 2015, Alibaba Group Holding Ltd. (hereinafter, Alibaba) reported a record-breaking $14.3 billion in sales over just 24 hours during the “Singles Day”2, a shopping holiday. In recent years, Singles Day sales in China have out paced Cyber Monday sales in the US: According to the Reuters.com, on November 11th, 2014, Alibaba reported a $9.3 billion sales from 24 hours, which is $7.26 billion more than sum of US retail ecommerce on Cyber Monday 2014. The statistic shows the Chinese online shopping market’s power, as well as Alibaba’s leading position as the Chinese e-commerce giant. Reaching multiple competitive advantages in the industry in China, Alibaba’s successful business is valuable to study for companies in both e-commerce...
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...bronze and the vase was covered with dragons and toads. A long medal pendulum hung inside the vase. On the outside it had eight dragon heads; each was mounted onto its sides. Each dragon had a ball in its mouth and the dragon’s head was mounted onto its side as well. The pendulum swung in the direction in which the earthquake occurred. The pendulum would strike a rod inside the vase, the rod would then knock a ball out of the dragon’s mouth, and then it would drop into the toads’ mouth. The direction, in which the earthquake was going, was the direction the ball would come out in. The Chinese needed this invention because China had experienced a lot of devastating earthquakes. The Chinese provided help to the victims of the earthquake if they were able to tell the direction that they should go with the supplies. During the time period of Ancient China, there...
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...mid-twenties, Sears switched its target focus from “only the farmer” to “both the farmer and city population”. The reason is that the low-income groups desired to buy the same goods as the middle and upper class. The country was becoming one big homogeneous market. And Sears noticed the trend and was aware of the consumer shopping habits, so they made changes accordingly. This strategy made me think of Starbucks in China. The consumer of Starbucks in America is almost for everyone, but in China, the target consumer is mostly for the wealthy upper and middle class. College students won’t pay 30 yuan for a cup of coffee because they can buy 6 bottles of CocaCola instead. Starbucks was really smart when they decided their target consumer in China. Since coffee is still not a common drink for Chinese, carrying a cup of expensive Starbucks is seen as a symbol of success or some little personal luxury for the middle class. Starbucks premium pricing strategy fits the market demand very well because the middle class and affluent consumers are growing, which means the market of Starbucks in China will be huge in...
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...CIS610-Foundations of Management Information Systems Case: Netflix Leading with Data: The Emergence of Data-Driven Video Question: What advice would you give to the CEO of Netflix? Ruohua Cui, Yang Cheng, Tien-Ni Kuo, Yitian Ren Digital distribution market is undoubtedly the future of the video rental industry. Netflix has already taken a good lead in it but must have fresh ideas to keep its advantage in the industry. Beating its competitors in the domestic market is important, however, Netflix should jump out of its own circle into a new market to gain the first mover advantage. Looking at the global market, China is a good choice for Netflix’s next station. Using the Porter’s Five Forces model, Netflix can examine its advantages and disadvantages see whether entering China is good choice: * Bargaining power of customers China has a growing economy with a large group of new middle-class, who are able and willing to consume on entertainment. Nowadays, Chinese usually watch films on free websites with a low picture quality and slow Internet speed. While the number of people watching films are increasing, the picture quality is becoming more important for the viewing experience. Providing a fast, flexible and high-quality service, Netflix can persuade many customers into its subscription model. * Bargaining power of suppliers: China’s film and TV show makers have been facing a major problem: plagiarizing (including unpaid online watching), which substantially...
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...Sabrin Zawahrah Professor Hamai English 101 1 July 2013 Fight Back Tradition, culture, respect and honor are the ideals that shape the Chinese civilization. Coming from a Chinese immigrant family whilst living an Americanized life, Kingston reveals the idea of gender being an important role in both cultures. In her story "No Name Woman" the author describes some of the gender roles and expectations both woman and men had to abide. Kingston uses a unique story told by her mother as an example. As she begins her article the author dives right into the story. Kingston retells only the information she is passed down secretly by her mother. Although the author is a Chinese-American she does not know the culture or what comes with it. To learn about the woman her aunt was, Kingston had to make due with her mother's words. The author begins to pick apart the story to find out just who her aunt was and what drove her to her demise. Because Kingston cannot ask about her unnamed aunt, she invents her own fantasies about why her aunt gave in to her forbidden passions. In the passage Kingston establishes realities between being a woman, displays the oppression of the male dominance the culture embodies, and the struggles that women have to go through to fight back against subjugation in all forms. To learn who her aunt was, Kingston must first learn what was the standard held by Chinese women at the time. From the beginning of "No Name Woman" the author depicts...
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...Singapore is the district that most of its Chinese residents that use Chinese language as a second language. And there must be some differences between the two Country’s Chinese Curriculum. But after several comparisons, the author found that there is no much difference between the two Countries of its general objective of Chinese Curriculum. They not only put more attentions on the language basic skills training but also lay stress on critical thinking/moral values/Chinese quality and Chinese culture. Therefore, in this dissertation I will analyze part of the language phenomenon in the Singapore Chinese textbook and its arrangement as the starting point. And put them in comparison to find out the similarities and differences. Keywords: China；Singapore；Primary School Chinese Textbook；Comparison 引言...
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...How should you handle the introduction, greeting, and handshaking? The female boss should enter the room followed by myself. We will both be wearing neutral colored conservative dresses with flat shoes. The Chinese businessman will introduce himself whom my boss will respond to with “Hello, we are pleased to meet you” and begin to formally introduce herself as Manager Johnson and myself as Mrs. Fowler. I will not attempt to introduce myself as it would be considered rude. We will wait for him to initiate a handshake at which time my boss will first shake his hand gently and then myself. How do you exchange business cards? Following the introduction it is expected exchange of business cards. It is important to have business cards that are printed on sides; one in English, the other in Chinese. These should include: Company Name, Personal name, title, fax and email. They should be clean, neat and printed in gold lettering. The exchange will occur one at a time standing up and holding the card on the corners with both hands with the Chinese side up. You will hand your card carefully showing him respect, you will show the same respect when accepting his card. Once I receive the card I will need to study it prior putting it on the table, showing interest by reading the details; if I had collected more than one business card, I would line them up in vertically in order of seniority going down on the table (NBC Universal, Inc, 2008). The culture coach informs me that they should...
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